, Cebu

REACTION/REFLECTION PAPER
Name : Leden R. Otero
Program : MBA major in Prof. Track, Generic, 2022
Subject : BM 228 – Social Responsibility and Good Governance
Professor : Eddie E. Llamedo, D.M., Ph.D., CESE

Chapter 5: Ethics and Corporate Social Responsibility For Business

Introduction:

Corporate Social Responsibility

(CSR) is the most recent
practice of companies in
taking active participation in
social concerns and community
matters. The customer or
the buying public besides other
stakeholders are the target of
responsibility. Providing
respect and satisfaction to
customers and other
stakeholders is not new to
business.
However, it is believed that
being responsible provides a
greater pay off on profitability
in the long run.
Basically, CSR is a business
philosophy that requires
companies to behave as good
corporate citizens. For instance,
in the conduct of their
operations, they must avoid
causing environmental
pollution or exhausting
limited natural resources.
Although
sometimes, making business
decisions, companies feel
pressurized to behave
unethically when seeking to
produce profits.
Corporate Social Responsibility
(CSR) is the most recent
practice of companies in
taking active participation in
social concerns and community
matters. The customer or
the buying public besides other
stakeholders are the target of
responsibility. Providing
respect and satisfaction to
customers and other
stakeholders is not new to
business.
However, it is believed that
being responsible provides a
greater pay off on profitability
in the long run.
Basically, CSR is a business
philosophy that requires
companies to behave as good
corporate citizens. For instance,
in the conduct of their
operations, they must avoid
causing environmental
pollution or exhausting
limited natural resources.
Although
sometimes, making business
decisions, companies feel
pressurized to behave
unethically when seeking to
produce profits.
Ethics are the moral standards you rely on when you make a decision. They define

what’s right and wrong, and outline the kind of behavior that businesses should not

engage in. For responsible decision making in a business environment, a good set of

ethics is the key. "what should be done". a management concept whereby companies
integrate social and environmental concerns in their business operations and

interactions with their stakeholders.

Chapter 5: Corporate Social

Responsibility and Ethics
SUMMARY OF THE TOPIC

These days, businesses are

regarded as the most influential
organizations on
Earth. They are not expected
though to merely produce
profits just like their traditional
role. The increasing role of the
civil society has placed much
pressure on companies to
turn into economically,
socially, and environmentally
friendly. Employees,
customers,
shareholders, media and civil
society put burden on
companies to be transparent and
accountable. Today, businesses
no longer operate in isolation,
because they are in a
distinctive position to affect
society at large and make
progressive influence.
The ideas of Milton Friedman
and Edward Freeman gave rise
to the concept of
Corporate Social Responsibility
(CSR). As written in the New
York Times Magazine in
1970, Friedman said that “the
social responsibility of business
is to increase its profits”
and “the business of business is
business”. This concept of
Friedman represents the
viewpoint that the
maximizing profits for the
shareholders are those
individuals or
groups who can affect or are
affected by any activities of
the company. Therefore,
stakeholders consist of
shareholders as well as but
not limited to, customers,
employees, suppliers,
community, environment and
society in general.
CSR activities are no guarantee of ethical behavior. Emergence of ethics and corporate

social responsibility during the last 20 years. Undertakes to clarify key ethical concepts

of morality, ethics, responsibility, and business ethics.

"Global business place" is characterized of applied ethics with implications for business

ethics. Evolving perspectives are delineated for business ethics in global arena.

In the 1980's we hardly could have predicted the explosive and rising ethical

expectations and initiatives regarding business behavior that have emerged worldwide

over the past two decades.

Phenomenon concept of corporate social responsibility (CSR) has continued to grow in

importance and significance. It has been the subject of considerable debate,

commentary, theory building and research. In spite of the ongoing deliberations as to

what it means and what it embraces, it has developed and evolved in both academic as

well as practitioner communities worldwide. The idea that business enterprises have

some responsibilities to society beyond that of making profits for the shareholders has

been around for centuries. For all practical purposes, however, it is largely a post- World

War II phenomenon "Archie B. Carroll and Kareem M. Shabana"

The Business Case for Corporate Social Responsibility: A Review of Concepts,

Research and Practice

Corruption - a very serious problem in developing and developed countries.

The World Bank was not ready to tackle corruption head-on in the early 1990's, in 1991

a senior officer of the WB, Dr. Peter Eigen, left the bank and organized.

Transparency International (IT), an nongovernmental organization with the mission to

fight corruption, it is headquartered in Berlin because corruption should be considered

primarily a challenge for developed countries.

Traditionally it was up to specific countries to make sure that the human rights codified

in international declarations and conventions were incorporated into national laws and

enforced by national governments.

Government – Business - Civil society

The power of multinational corporations has increased dramatically. Nongovernmental

organizations have multiplied, become more vocal and applied more pressure; the

government in many countries have become weak.

Business, Like all actors in the society, has to operate in responsible manner, including

through respecting human rights, Business has an enormous potential to provide an

enabling environment for the employment of the human rights through investment,

employment creation and the stimulation of economic growth. its activities have also

threatened human rights in some situations and individual companies have been

complicit in human rights violations. "Chandler 2005".

The Equator Principles is a risk management framework, adopted by financial

institutions, for determining, assessing and managing environmental and social risk in

projects and is primarily intended to provide a minimum standard for due diligence to

support responsible risk decision-making.

RECOMMENDATIONS:

Organization can manage ethics in their workplace by establishing ethics management

programs that convey their corporate values, codes and policies to guide decisions and

behavior. However, the mere presence of code of ethics does not necessarily guarantee

causation of ethical behavior within a company, unless it is integrated into all aspects of

an organization. Employees must buy into the programs and code of ethics for easy

access for retaining more talented staff. Also the CSR is not only relevant because of

changing the policy environment, but also, because of its ability to meet business needs

and objectives. Understanding CSR initiatives and being socially responsible can have

the following benefits: strengthening relationships with stakeholders attracting the best

industry talents because of an effective corporate governance framework. A well

managed CSR creates social and environmental value, while supporting a company’s
business objectives and reducing operating cost, and enhancing relationship with key

stakeholders and customers. In business of all sizes, it is vital that managers recognize

the importance of creating and maintaining strong image, and that they also make

employees aware of it. Corporate image should begin in the offices of the managers. It

should be based on the development of good company policies, rather than on

controlling the damage caused by bad company policies.

CONCLUSION:

Employees are primary stakeholders who directly contribute to the success of the

company. Understanding employee reactions to corporate social responsibility may help

answer lingering questions about the potential effects of corporate social responsibility

on firms as well as illuminate some of the processes responsible for them.

Corporations are facing increasing demand for that they should look beyond their own

interests and priorities those of the society in which they operate. This is because

business host their operation within the society and in return, society expects these

businesses to show responsibility for aspects of their operations. It is no longer

acceptable for a firm or corporation to experience economic problems in isolation from

the stakeholders.

CSR be seen as useful marketing tool for attracting the most qualified employees, and

also as an important component of corporate reputation. Accordingly by enhancing

corporate image and reputation, CSR is appropriate tool for marketing the organization

to prospective employees.
When it comes to preventing unethical behavior and repairing its negative side effect,

companies often look to managers and employees to report any incidences and

observe or experience. However, barriers within the company culture itself (such as fear

of retaliation misconduct) can prevent this from happening.